As of: March 23, 2024, 5:57 a.m
By: Patrick Freiwah
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Things are going smoothly for Rheinmetall as a result of the Ukraine war.
The Bundeswehr is ordering new tanks worth billions from the arms company.
It is not produced at home.
Redbank/Munich - For about two years now, champagne corks have been popping in the executive suites of defense companies all over the world: Due to the tense geopolitical situation as a result of the escalation in Ukraine, governments around the world are investing in national defense.
This also plays a major role for Germany as an industrial location, where several large companies make money from the production and distribution of military equipment.
This also includes Rheinmetall, whose production has recently tripled, while the Rheinmetall share price has been on the rise for months.
Rheinmetall sells tanks from Australia to the Ministry of Defense
Now the second largest German defense company (after Airbus) has announced the next billion-dollar deal: The federal government is purchasing 123 new wheeled armored vehicles from the Düsseldorf-based arms giant for national defense.
According to a statement, the contract volume, including services, is around 2.7 billion euros; the agreement was also confirmed by the Bundeswehr's procurement office.
Delivery is scheduled to begin in 2025 and last until 2030.
The “Heavy Weapons Carrier Infantry”, as the vehicle type is called, serves as a replacement for the mini-tank “Wiesel 1”, which is used in infantry units for fire support.
Rheinmetall Defense Australia: The arms company's subsidiary produces 123 wheeled tanks for the Bundeswehr.
© IMAGO/JONO SEARLE
However, the value creation of the war equipment does not take place in Germany: According to the information, the wheeled armored vehicles are primarily manufactured by the Australian subsidiary Rheinmetall Defense Australia, where the arms company employs around 900 people in a “Military Vehicle Center of Excellence” (MILVEHCOE).
Special assets of the Bundeswehr: billions more for Rheinmetall
The large sum is financed from the special fund for the Bundeswehr (100 billion euros), which was initiated after the start of the war in Ukraine.
Why the arms industry is still supposedly in crisis.
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The managing director of Rheinmetall's Australian division said at a previous ceremony in 2023: "We welcome the close defense industrial partnership between Australia and Germany as the two nations work together to enhance global security," said Nathan Poyner.
Rheinmetall: The time factor was probably crucial
According to the Bundeswehr, the time factor played a major role in the government's decision in favor of Rheinmetall: "The purchase of the vehicles available on the market in Australia ensures that the Army's intermediate forces are equipped as quickly as possible," it says in a corresponding statement.
Delivery is scheduled to begin in 2025 and last until 2030.
In Australia, Rheinmetall says it is the largest supplier of military vehicles to the armed forces there.
(PF)